Locking in value and incentives for solar projects in 2026
By Martin Pochtaruk, CEO of Heliene | There are many reasons to be optimistic about the solar market and future of domestic clean energy manufacturing in the United States right now. Solar continues to enjoy broad public and bipartisan support. More importantly, it remains the cheapest form of energy, making it the economical choice even amid rhetorical headwinds. And solar’s potential to meet rising energy demand and outpace legacy generation sources has been showcased time and again, it is factual.
Of course, there are still some sources of uncertainty and volatility causing developers to make adjustments to their short- and long-term strategies. Chief among these are tightened foreign entity of concern (FEOC) restrictions introduced by the One Big Beautiful Bill Act (OBBBA). With preliminary guidance recently released, developers are beginning to get a more clear picture of how and to what extent incorporating solar modules and components made by prohibited foreign entities (PFE) would impact their project’s tax credit eligibility.
Wise developers will take advantage of market shifts to maintain momentum for their solar projects this decade. With the U.S. solar supply chain becoming fully onshored, it’s possible to qualify for federal incentives via domestic content compliance. Safe harboring, as used in the past, continues to be a sound strategy for protecting project models and financial schedules in a changing policy environment.
Considering all paths for incentives and bonuses
The importance of reshoring and onshoring solar supply chains cannot be understated. When most or all the components required to manufacture a solar module can be made domestically, the U.S. product does compete with global sources while reducing reliance on foreign components and product imports. This is essential to securing affordable, reliable, and secure energy for decades to come.
With critical solar module components like polymers, cells, frames and more now available through fully domestic suppliers, developers have a more clear path to reach the threshold required to qualify for the 30% investment tax credit (ITC) and 10% domestic content bonus ITC.
Developers prioritizing domestic content should look to work with manufacturers that provide transparency into the source and costs of individual module components. Not only does this help ensure modules qualify for domestic content adders, it gives developers peace of mind knowing they are complying with FEOC restrictions. Some manufacturers may even offer the opportunity to customize a module’s bill of materials, making it possible for developers to balance budget and domestic content needs. The ability to access full, detailed information on the cost and sourcing information for all aspects required to manufacture solar modules will become even more critical for developers as FEOC guidance is finalized in the coming months.
In addition to incentives available for the contents of the modules themselves, developers should also educate themselves on project-based incentives that reward solar developments planned for low-income communities or those where legacy energy generation assets, such as coal, were previously located.
Staying ahead of the game with safe harbor opportunities
Throughout 2025, it was possible for developers to secure 2025 tax-year related tax credits for a project in two ways: By beginning physical work on the project or by paying for at least 5% of the project’s total cost. Many chose to take the latter route, pre-purchasing qualifying solar modules (or other equipment) for later deployment.
This year, there are still opportunities for developers working with domestic manufacturers to secure incentives via the physical work route. Projects must prove that significant on- or off-site work is performed prior to a new July 4, 2026, deadline.
On-site work is more straightforward and includes initial construction work and installation that occurs at the project site. Off-site physical work can include manufacturing of project components like racking, rails, and inverters. When this work is being performed by a third-party manufacturer, the developer must prove that the components are being purchased and manufactured under a binding contract. This is another area where manufacturers that provide detailed, transparent information on component costs can give developers an advantage.
Even during a tumultuous time for global markets, solar remains on top. It’s already the cheapest form of energy and its competitiveness will continue to improve as more domestic manufacturing comes online while the FEOC conditions get more stringent year after year. As policies, incentives, and deadlines shift, developers can still take advantage of available opportunities. Acting now to monitor market shifts and work with solar manufacturers who prioritize domestic content and cost transparency will help developers lock in value for their projects and communities for years to come.
Martin Pochtaruk is founder and CEO of Heliene. He has 35 years of experience managing manufacturing and innovation businesses across Europe and the Americas.
